Sierra Club Reaction: U.S. Will Not Extend USMCA

Washington, D.C. - According to reporting from Bloomberg, the United States will not renew the trilateral trade agreement it has with Canada and Mexico, known as the USMCA. At the time USMCA was negotiated, Trump declared it "the greatest trade deal ever," but the U.S. trade deficit has increased under the deal.

The USMCA was negotiated in Donald Trump's first term as a revised version of the North American Free Trade Agreement (NAFTA). The deal has a provision requiring the three governments review the pact after six years and decide whether or not to extend the deal. That six-year review deadline is approaching on July 1st. If the countries do not renew the deal-as is, nor opt to leave the agreement, it will continue through 2036 with automatic annual reviews.

Last year, Sierra Club joined other climate advocacy groups in submitting public comments, and sending a letter, to U.S. Trade Representative (USTR) Jamieson Greer outlining the changes to the environmental chapter of USMCA, and more broadly in the agreement, that would aid in the creation of a sustainable and resilient manufacturing sector by protecting the environment and the health of the public and workers. Since then, hundreds of House and SenateDemocrats have demanded that Greer use the review period to increase U.S. competitiveness by requiring pollution reductions and good job standards in the agreement.

In response, Sierra Club Industrial Transformation Campaign Deputy Director Iliana Paul issued the following statement:

"The USMCA needs major changes in order to aid in the creation of a sustainable and resilient manufacturing sector that is good for workers and the environment. Sierra Club has made it clear that the current USMCA leans into the free trade status quo 'race to the bottom' system that creates perverse pollution incentives and encourages the offshoring of American jobs. With no indication that the necessary changes were on the negotiating table, not renewing USMCA is the best outcome at this time.

"We look forward to continuing to push for our priorities over the next year to achieve a trade deal with our North American neighbors that has real, tangible improvements for workers and the environment."

Additional Background:

In May, 32 House Democrats signed the Fair Trade for Working Families Resolution to outline the path forward for a robust review and reevaluation of USMCA. Introduced by Rep. Rosa DeLauro, the resolution would ensure U.S. trade policy boosts domestic manufacturing, protects safe, family-supporting jobs, and reduces pollution at home and abroad. The current trade policy standard allows corporations to shift production to places with weak environmental safeguards, which worsens pollution and climate-warming emissions globally.

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About the Sierra Club

The Sierra Club is America's largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit https://www.sierraclub.org.